SPACs, also known as blank-check companies, have been around for the last 20 years or so, but have seen a resurgence this year as the market deals with high levels of liquidity, depressed valuations and a strong appetite for growth companies. Special Purpose Acquisition Companies (SPACs) raise money in an IPO and place it in a trust while the sponsor looks for a target to acquire. Once the companies complete the merger, the target company becomes a listed stock. SPACs have raised a record amount of capital in 2020 including the largest SPAC deal ever, when Bill Ackman’s hedge fund took one public with over $4 billion to spend.
This webcast will explore how the results of the election may affect the SPAC market. What can we expect to see in the SPAC market as the economy rebounds and companies seek alternative routes to the public market? What are the benefits and challenges that surround these transactions? How are these transactions different from typical M&A transactions, and what nuances do investors and companies need to be aware of?
Mitch Nussbaum is the vice chair of Loeb & Loeb and serves as co-chair of the firm’s Capital Markets and Corporate Department. His practice focuses on representing emerging growth companies and investment banks in initial public offerings, follow-on public offerings, shelf takedowns, registered direct placements, PIPEs and other private placements (144A, Reg D, Reg A, Reg S, etc.).
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This webcast discusses the current environment regarding ESG governance, management and disclosure requirements
SPACs have seen a recent resurgence as the market deals with high levels of liquidity, depressed valuations and a strong appetite for growth companies.